The Wright City R-II School District reduced its future interest expense by about $158,061 from the original Series 2007 Bonds by authorizing the sale of a $1 million general obligation refunding bond. School board members approved refunding the bond resolution at the Dec. 15 school board meeting. The $158,061 brings the district's total net interest savings to $2,235,998 since 1993. The average interest rate is approximately 2.07 percent, which is compared to the Series 2007 Refunded Bonds, which had an average interest rate of approximately 4 percent. Superintendent Dr. Chris Gaines said he felt the board made a wise decision in approving the bond. "This plan achieves good savings, while preserving considerable flexibility for the district in the future," he said. Board President Austin Jones said the $158,601 of interest savings for the Series 2011C refunding is not all the district could save because of the Series 2011C refunding bonds having a call feature in 2016 at no penalty. "If interest rates are lower in 2016 or later, we can take advantage of that," he said. "Meanwhile we are locking in these levels that are almost 2 percent lower than they were in 2007." Larry J. Hart, of L.J. Hart and Company of St. Louis, prepared the refunding proposal and company representative Christine Perkins addressed that information with the school board, explaining how it can fit into the long-range plans of the school district. She said three significant factors making the Series 2011C refunding possible were the lower interest rates than in 2007, no penalty for the Series 2007 Bonds, which are subject to prepayment on March 1, 2012, and the district's ability to participate in the state's Direct Deposit Program. This program makes it possible for the district to receive a "AA+" rating from Standard & Poor's Corporation on the refunding bonds. Hart commended Gaines in his preparation to supply the necessary data for the rating application and official statement, as well as the school board for making the Series 2007 Bonds callable in five years. Board member Alice Klem said she was pleased with the plan L.J. Hart and Company had developed. The Series 2011C refunding bonds were underwritten by L.J. Hart and Company. Hart noted The First State Community Bank purchased $100,000 of the bonds. The closing for the Series 2011C Refunding Bond issue is Dec. 29.